NCLAT stays corporate insolvency proceeding against ECL

Kolkata: The National Company Law Appellate Tribunal on Saturday stayed its Kolkata bench's order for commencement of insolvency resolution process against Eastern Coalfields Ltd for alleged non-payment of interest.

The Kolkata bench's December 19 verdict came after it admitted an insolvency petition filed by Hinduja Group- controlled Gulf Oil Lubricants India (GOLIL).

However, the NCLAT on Saturday ruled that "until further orders, the operation of the impugned order dated 19th December, 2018 passed... by NCLT Kolkata Bench shall remain stayed..."

NCLAT has listed the matter on January 29 for further hearing.

Although ECL –a subsidiary of state-owned mining major Coal India Ltd –had paid the principal sum of around Rs 84.71 lakh to GOLIL, one of its operational creditors, it allegedly declined to pay the interest amount at the rate of 18 per cent per annum.

The amount in question is about Rs 40 lakh.

"The application filed by the operational creditor...is hereby admitted for initiating the Corporate Insolvency Resolution Process in respect of Eastern Coalfields...," Justice Madan B Gosavi had said in his December 19 order.

"Considering the facts and materials on record, I hold that the corporate debtor, Eastern Coalfields, is liable to pay interest to the operational creditor, that has not been paid in spite of demand," the judge observed.

ECL officials did not respond to repeated calls for comment.